Melamine prices remained under pressure globally throughout January 2025, driven by weak demand, ample inventories, and limited cost support from feedstock urea. The Lunar New Year holiday in parts of APAC led to lower production rates and subdued market activity, while seasonal slowdowns in Europe and North America further dampened demand. Additionally, tariffs on Melamine and broader chemical industry challenges in key markets like the United States contributed to market instability.

In China, Melamine prices remained bearish due to softened energy prices and weak demand from laminates, boards, and coatings. The decline in coal demand led to lower Melamine production, while feedstock urea prices stayed weak, providing minimal cost support. The Lunar New Year holiday further paused market activities, with many downstream factories shutting down or reducing operations, leading to lower operating rates across the chemical sector. Trading remained subdued, and buyer resistance to high prices persisted, keeping market sentiment weak.

Export demand remained weak, with China’s Melamine exports declining as sluggish demand from key market like India, Vietnam, and Brazil persisted. The ongoing real estate slowdown in China further limited the demand, while buyers prioritized immediate needs over long-term restocking, contributing to a cautious market environment.

In Germany, Melamine demand remained weak, particularly in the construction and coatings sectors. The residential construction slowdown and lack of new orders led to reduced consumption of Melamine-based materials. With market uncertainty and high building costs affecting the economy, subcontractor rates declined, reflecting weak demand across the chemical industry. Overall market sentiment remained bearish.

The United States also faced price stagnation, with demand from laminates and coatings showing no improvement. Seasonal winter conditions further slowed construction projects, reducing the need for Melamine-based products. Elevated inventories and competitive low-cost imports prevented any price recovery, while port delays and winter storms along the Gulf Coast disrupted supply chains. The imposition of US tariffs on Chinese Melamine imports added further cost pressures, impacting domestic producers and downstream industries reliant on Melamine-based resins, coatings, and laminates.

As per ChemAnalyst, Melamine prices will remain under pressure in the coming weeks, with the Lunar New Year in APAC and slow demand in Europe limiting procurement. In the USA, prices are expected to rise as demand recovers and tariffs on Chinese imports tighten supply. The US chemical industry, heavily reliant on imports for Melamine, remains vulnerable to trade disruptions. With rising demand and supply constraints, prices are likely to gain upward momentum soon.